Void a check from last year, taxes already filed

TJScott · ‎April 11, 2023

I wrote a check last year that was deducted on our tax return as an expense. The check was for $250. The bank read it as $250.50. So I have two entries for the same expense. I can void the check easily enough.

Keeping thing honest without filing two amended tax returns, our 1120S and 1040. How do I record a credit for that account for this year's tax return?

I'm thinking journal entry, but not looking to debit one account, credit another. Just looking to credit last year and debit this year.

Thanks!

Rainflurry · ‎April 12, 2023

@TJScott

You can make a journal entry but it's easier to make a deposit in QB for the duplicate expense. Deposits create a journal entry that debits the selected bank account and credits the account you select under 'Account'. Make a deposit (dated this year) and assign it to the same expense account that was overstated last year. That will debit (increase) your bank account and credit (reduce) your overstated expense. Then, when you reconcile your bank account, this deposit can be cleared against the duplicate expense payment.

View solution in original post

Rainflurry · ‎April 12, 2023

@TJScott

You can make a journal entry but it's easier to make a deposit in QB for the duplicate expense. Deposits create a journal entry that debits the selected bank account and credits the account you select under 'Account'. Make a deposit (dated this year) and assign it to the same expense account that was overstated last year. That will debit (increase) your bank account and credit (reduce) your overstated expense. Then, when you reconcile your bank account, this deposit can be cleared against the duplicate expense payment.

TJScott · ‎April 14, 2023

That worked perfectly. Thank you!

FritzF · ‎April 22, 2023

Hello, Rainflurry.

I appreciate you for always sharing your knowledge about QuickBooks. This will definitely help other users as well in the future. Please keep on posting here in the Community.

Stay safe and have a great rest of the day.

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Void a check from last year, taxes already filed